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eXtra says IPO is an option for consumer finance unit

By Pramod Kumar
Qatar stock exchange Reuters/Naseem Zeitoon
The strategic options are still subject to completing the necessary financial, technical and legal assessments and regulatory approvals

Saudi retailer United Electronics Company (eXtra) is evaluating strategic options concerning its Shariah-compliant consumer finance business, including the possibility of an initial public offering (IPO).

In a statement to the Saudi Exchange (Tadawul) on Tuesday, the electronics major said that decision regarding these strategic options for United Company for Financial Services (Tasheel) are still subject to completing the necessary financial, technical and legal assessments; obtaining the relevant corporate approvals, and necessary regulatory approvals.

On Monday, Reuters reported that the company is planning an IPO of its Islamic consumer finance business, citing two sources familiar with the matter.

HSBC has been appointed to arrange the public share sale, said the sources.

Tasheel provides Shariah-compliant consumer finance, buy-now-pay-later installment plans and credit cards, according to information on its website. It obtained a license to sell credit cards from the Capital Market Authority in 2021.

HSBC was the financial advisor and lead manager of eXtra’s IPO in 2011, which raised 396 million riyals ($105.60 million) for the sale of a 30 percent stake offered to the public.

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